Last week’s shocking spike in crude oil prices is +12% and counting, the biggest one-week gain in five years. Media stories blame one culprit: the November 30 OPEC agreement to cut production.
Crude is trading around $50.80 & as we can see on charts it is trapped in a range & producing a symmetrical triangle pattern. Generally these patterns appear before a big move & provide a either side breakout in 50-75% length range. Candlestick pattern are neutral with RSI. Decreasing volume from last few weeks hint for the same.
Out with the old: Super Commodities such as Gold, Silver,Oil etc are in a so-called secular bear market that may stretch for years.Remember the commodities supercycle, that seemingly endless 2000s commodities boom? It drove oil, gold, copper and other commodities to record levels may be moving out of order
price closed the week on a positive note in the last trading session of the week. After making the low of 4691 crude bounced back strongly on 5th November and closed the week at 4861. Crude oil price has strong support area of 4840-4830 if on Monday trading session crude oil price manage to sustain this level of 4830 and above expect a sharp rally towards 4951 and there after to 5100.
Now Crude Oil is trading around $94.30 & as we can see on chart, as crude bounced back from $92.50 mark & this area providing support since may 2013. We have witness consecutive 3 bounce from here & there could be 4th one now. Apart from this, crude is getting support from 161.8% February correction .In last few days we also observe a bullish construction on candlestick pattern. A Lower trendline support & positive divergence proving more strength probably.
Now crude Oil is trading around $98.30 & as we can see on charts, crude trying to bounce back from a ascending tradeline. This tradeline was able to hold crude downside move since june 2013. At present point the area represent 138.2% feb correction level which could act as support. Indicators showing a positive divergence which support a positive outlook for coming trading session.
Now crude is trading around 4960 ($90.40) & as we can see on charts the area around this level represent 61.8% feb correction level of last wave . At the same time this area is in combination of parallel support. Oversold indicators also hinting for a correction or sideways trading ahead.However there is no positive pattern or move.